Midroc will finance, build and complete the project in its entirety and K2A will then take over the properties after completion, which is expected to take place during the second half of 2023. The total property value amounts to approximately SEK 470 million, which is K2A's largest acquisition to date. K2A has paid a down payment and the remaining share of the purchase price is paid upon access to the completed properties. K2A's intention is to finance the acquisition through bank loans and equity.
The properties Uppsala 50: 1 and 50: 2 are located in the area Östra Sala backe, approximately 3 km east of Uppsala Central Station and link the areas Årsta and Sala backe. The projects are part of a larger development area in Uppsala where a total of 3,000 homes are planned to be built, of which about 700 homes have been completed. The two projects that K2A has acquired are called Konstnären and Norra Träpalatset and after completion will form a residential area with 4 buildings on 4 to 10 floors. The block will consist of 216 rental homes, an LSS home, a garage and a small number of premises. The total lettable area amounts to 11,350 sq.m. with a rental value of approximately SEK 22 million. Construction start for the projects is planned for the first half of 2021 and the project is expected to be completed during the second half of 2023.
The projects will be environmentally certified according to Miljöbyggnad Silver at the same time as the energy classification will meet the requirement Miljöbyggnad Guld. The buildings will more than 50 percent be built with a wooden frame and the completed buildings are judged to achieve the highest environmental class, dark green, according to K2A's green framework.
"It feels very good that we are strengthening K2A's position in Uppsala, Sweden's fourth largest city, with the acquisition of the project Konstnären and Norra Träpalatset. We are also pleased to once again make a transaction with Midroc, a housing developer who shares K2A's views on quality and sustainability. Being able to acquire a project with the highest environmental classification is completely in line with K2A's ambition to become Sweden's most sustainable real estate company," comments Johan Knaust, CEO of K2A.